The European Parliament is working hard on cryptocurrencies by agreeing on a new tax system, for both users and authorities.
A universal taxation of cryptocurrencies soon?
The taxation of cryptocurrencies is still much discussed within the governments of the European Union. While France stands out for its high taxation and Germany does it alone, the European Parliament has preferred to coordinate everything.
During a meeting held yesterday, the various regulators jointly discussed the taxation applicable to all countries of the European Union. According to the press release released by the Parliament, almost 566 votes in favor of the proposal against only 7 against. For the moment, few elements have been provided regarding future taxation. According to the document, the tax would currently only apply to tokens converted into fiat currency. Furthermore, it should be favorable to small traders and casual cryptocurrency users. Nothing has been specified regarding companies and it could be that the situation will change in the event of global adoption.
It will also be necessary to wait some time before seeing the application of this new taxation. According to the Parliament, the first step of the regulators would be to study the taxes applied in the various countries in order to identify a compatible model for all territories. Crypto assets will also need to be defined, suggesting that the European Union could engage in heated debates on the matter.
Finally, the European Parliament intends to modernize its tax system thanks to the blockchain.
Blockchain’s unique features could offer a new way to automate tax collection, limit corruption, and better identify ownership of tangible and intangible assets.
Extract from the press release of the European Parliament.
The various European administrations may therefore have to change their collection systems in the years to come.
In France, ADAN remains at the turn of taxation
In August, the blockchain association ADAN announced its intention to propose other tax alternatives to the government. This is now done as the latter were debated in September. According to BFM Crypto, ADAN would like to reduce the tax imposed on investors in digital currencies by 30%. Therefore, these would only apply in the event of the termination of the rights.
Similarly, simplified taxation for employees receiving cryptocurrencies would also be proposed. In this case, the fee would only be needed when exchanging tokens for cash. However, the amendment is still very vague regarding the fate of employees who receive their entire salary in cryptocurrencies. For the moment the issue is still under discussion and the government has not yet decided on possible changes.
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